Get free access to our world class MLS search tools, save your favorite listings, create saved searches & much more!

Las Vegas Shadow Inventory - Foreclosure Fact or Fiction?

Posted by Julie Wright on Tuesday, April 10th, 2012 at 10:55am.

"Where have all the homes gone?!" In the Las Vegas real estate market it's like the clock has suddenly been turned back to the year 2004. Within hours there are multiple offers on everything listed under $250k, often sight unseen, and most accepted contracts are going above list price. New home builders are warning real estate agents about imminent price increases.

At the beginning of November there were approximately 11,500 single family homes actively on the market that were not yet under contract. Today, less than 6 months later, there are only 5,074 active single family listings in the Las Vegas MLS. That's about a six week supply at the current rate of absorption.

This is a direct result of Assembly Bill 284, which effectively stopped the non judicial foreclosure process in Nevada. Before AB 284 became law, lenders were filing around 5,000 Notices of Default per month. Now that figure is down to about 300 a month. Actual foreclosures are down to about 800 per month, and even that figure is dwindling rapidly. REO teams are downsizing staff and services, as there doesn't seem to be an end to the drought any time in the near future.

So where is the "shadow inventory" we keep seeing in the news? Since Nevada lien holders can no longer foreclose on properties non-judically, they have gotten much more aggressive about encouraging and approving short sales. Many owner occupants with true hardships that don't qualify for loan modifications are receiving cash incentives from $3k up to a whopping $30k for cooperating in a short sale.

Lienholders are also modifying many borderline loans, often unsolicited. I had a call from one of my clients last week. He had been trying to refinance his home through a new lender. (He was just barely upside down and had excellent credit.) Out of nowhere, he got a call from his existing mortgage lender, Bank of America, offering an interest rate reduction that saved him more than the refinance would have, at no cost, and without extending the life of the loan!

So in the foreseeable future, the "shadow inventory" in Nevada is a myth. And with the Las Vegas economy recovering, by the time AB 284 expires, many Nevada homeowners will be able to achieve a work out solution with their lienholders.

For more news on Nevada's improving economic situation and rapidly shrinking inventory, check out this week's recent news articles:

Single Family Homes Down to Six Week Supply
Tide Changing for Lake Las Vegas Economy

Mastura Roberts
(702) 919-5400
offers@greatlasvegashomes.com

Team Leader, The Tonnesen Team
Berkshire Hathaway HomeServices, Nevada
3185 St Rose Pkwy #100 Henderson, NV 89052

With over 30 years of experience helping families call Las Vegas "home!"



Related Blog Posts

Las Vegas Market Update

Salestraq, which provides our local database for new home sales and floor plans, also provides some excellent, easily understandable reports on current real estate market trends in Las Vegas. Below is the latest report that was released with the pertinent sales statistics through the end of August 2013. Since then, the...

15 crazy real estate myths your clients probably believe

People don’t know what they don’t know, and what they do know is enough to create false perceptions Key Takeaways         Erroneous assumptions about the business can cause a ton of confusion for the public about how the real estate process works. The real estat...

Las Vegas Home for sale -- Sold! - 421 Petal Dew, Las Vegas, Nevada 89183

421 Petal DewLas Vegas, NV 89183MLS #2024044Closed escrow 9-28-18Agent: Natalie Belanger This immaculate 2 story, single-family Las Vegas home with 3 bedrooms and 2½ baths, has an attached 1 car garage and a large yard. It is conveniently located on a corner lot in beautiful Silverado Ranch in Las Vegas, a we...

15 and 30 Year Home Loan Rates

The final quarter of 2017 was full of market-moving headlines, including a rise in the short-term Fed Funds Rate, which is the rate at which banks lend to one another overnight, along with the passage of the Tax Cuts and Jobs Act. The tax bill energized markets, pushing U.S. Stocks to record highs. The rally was f...

Great Las Vegas Home Listing 1313 Erskine Drive

Check out a video of this beautiful, Well Kept Home in a highly desired gated community in Silverado Ranch. The home is in perfect condition with upgraded custom features inside and outside! The classy and comfortable home has a beautiful color scheme, All Ceramic Tile on the first floor, wide stairway, wonderful...

2 Responses to "Las Vegas Shadow Inventory - Foreclosure Fact or Fiction?"

Zane wrote: Excellent site you've got here.. It's hard to find quality writing like yours nowadays. I truly appreciate people like you! Take care!!

Posted on Friday, April 13th, 2012 at 2:06am.

Las Vegas is a Seller's Market Again! - justsold's Blog wrote: [...]Links

Las Vegas Shadow Inventory - Fact or Fiction
Is Judicial Foreclosure Coming to Las[...]

Posted on Friday, April 20th, 2012 at 5:11pm.

Leave a Comment

Have a Question?

Contact Us

Follow Us